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Is a Slowing Global Economy Enough to Cool Core Inflation?
Last week saw some market movements – the TSX rose a half of a percent on higher oil prices, and yields were up a few of basis points across the yield curve – but it was a quiet week otherwise. Statistics Canada’s update on international trade and investment activity was the only data release for…
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Rates Increases Finally Taking Hold
Recent data releases provide the surest sign yet that the spate of interest rate hikes since last spring are finally having their intended impact. While real gross domestic product (GDP) rose 0.3% in May, the more telling data is the June estimate, which points to a contraction. Estimates indicate real GDP fell 0.2% for the…
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Canadian Retail Sales Stalling as Higher Rates Take a Bite
After showing strength in late 2022 and early 2023, consumer spending appears to be stalling. Retail sales were flat in June, based on preliminary estimates from Statistics Canada. That followed a 0.2% increase the previous month, falling short of the 0.5% increase economics were expecting. This slowing in consumption is more pronounced after adjusting for…
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Housing Targets – Ready, Fire, Aim
In an average year, Canada constructs 200,000 new housing units, including single family dwellings, condos, and other types of homes. Although the pace of construction has been increasing over the past few years, it’s not nearly enough to address affordability challenges and keep up with the demand resulting from a growing population. It is estimated…
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Housing Markets Remain Resilient
After experiencing large swings over the past year, Canadian home sales appear to be stabilizing based on the latest data from the Canadian Real Estate Association (CREA). Home sales activity was up in June in most provinces, with Newfoundland (+19.0%) and Nova Scotia (+7.5%) out front, followed by Manitoba (+4.8%), Alberta (+4.7%), and BC (+4.5%)….
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Will Higher Rates Slow the Housing Market Recovery?
Employment rose by 60,000 in June with full-time employment up 110,000. Despite this increase in overall employment, the unemployment rate moved from 5.2% in May to 5.4% in June. While growth in employment is strong in all sectors, it was not enough to compensate for the new entrants into the labour force as the population…
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Anticipating the Bank of Canada’s Next Move
The Bank of Canada is seeing the economy performing better than expected with inflation remaining higher than desired. The Bank moved off the sidelines last month and raised rates by 25 basis points. The question is, will the Bank raise the overnight rate by another 25 basis points this month? Below we look at the…
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